Five and Under

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BIGT must have reorganized financing./
Pinnacle Teeters Toward Default
PHILLIPS BUSINESS INFORMATION , 4/16/2002 5:47:00 PM
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Apr 16, 2002 (Communications Today/PBI Media via COMTEX) -- Telecom tower owner and operator Pinnacle Holdings [BIGT], a competitor in a sector of the industry that grew on the shirt tails of wireless carriers' growth, is on the verge of defaulting on its loans.

Sarasota, Fla.-based Pinnacle, with holdings including Pinnacle Towers, failed to gain a fourth extension from lenders of its senior credit facility, which expired on Friday. Pinnacle is continuing discussions for an extension, but said its lenders could declare a default and demand immediate repayment. Pinnacle's said the security for its credit facility consists of substantially all of its and Pinnacle Towers' assets including the stock of direct and indirect subsidiaries.

Business for Pinnacle and other telecom tower and antenna companies surged in the late 1990s as wireless usage exploded. Tower companies' profile with investors also grew during that time as they acquired tower properties from wireless operators, who began to focus more on providing service and less on owning and operating tower sites. However, for its fiscal year 2001, Pinnacle reported a net loss of $448 million attributable to common stockholders, up from a loss of $124 million for FY 2000.

Communications Today, Vol. 8, No. 72




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